Boeing Company (BA) shares slid Wednesday after regulators threw up a major roadblock to its planned acquisition of Spirit AeroSystems Holdings, Inc. (SPR). The Federal Trade Commission is requiring Boeing to divest substantial Spirit assets before the $8.3 billion deal can move forward—a move aimed squarely at preventing Boeing from dominating the market for critical aircraft components.

What Boeing Must Give Up

Under the FTC's consent order, Boeing faces some significant carve-outs. The company must sell Spirit businesses that supply aerostructures to Airbus SE (EADSY), including transferring relevant assets and personnel directly to Airbus. Think fuselages, wings, and other essential structural components that Airbus currently relies on Spirit to provide.

Boeing also has to divest Spirit's aerostructures facility in Subang, Malaysia, to Composites Technology Research Malaysia. And it doesn't end there—Boeing is required to provide transition support to both Airbus and CTRM to ensure production handovers go smoothly and don't disrupt existing supply chains.

Why Regulators Drew the Line

The FTC's concern is straightforward: without these divestitures, Boeing would gain too much control over critical aircraft components, potentially squeezing out competitors. The asset sales are designed to safeguard rival manufacturers' access to essential parts like fuselages and wings, protecting competition in both commercial and military aircraft markets.

There are additional strings attached. Spirit and Boeing must continue supplying aerostructures to competing manufacturers for existing and future military contracts. Spirit cannot favor Boeing or withhold materials or confidential data from other aircraft builders—a provision meant to keep the playing field level.

The FTC approved the consent order with a 2-0 vote. The order now enters a 30-day public comment period before becoming final. Assuming Boeing complies with the new terms, the acquisition can still proceed, just with a smaller footprint than originally planned.

BA Price Action: Boeing shares traded 1.5% lower at $202.30 at last check Wednesday. SPR shares climbed 2.72% to $38.56 at the time of publication.